Latham & Watkins Advises Siemens Healthineers on €2.73 Billion Capital Increase

Latham & Watkins LLP advised Siemens Healthineers AG (Siemens Healthineers) on a capital increase with gross proceeds of €2.73 billion. The 75 million new shares were placed with institutional investors through an accelerated bookbuilding offering at a price of €36.40 per share without a prospectus. The capital increase was carried out utilizing in part the existing authorized capital and excluding the subscription rights of shareholders.

Subsequently, Siemens Healthineers’ share capital increased by 7.5 percent to €1.075 billion. The new shares were included into trading on the regulated market (Prime Standard) of the Frankfurt Stock Exchange on September 9, 2020.

Siemens Healthineers will use the net proceeds from the capital increase to replace part of the bridge facility that Siemens Finance B.V. provided to Siemens Healthineers to finance the planned acquisition of Varian Medical Systems, Inc. (Varian). Siemens Healthineers has thereby successfully completed a step in the financing of the Varian acquisition with a mix of debt and equity as announced on August 2, 2020.

The share placement represents the largest ABB transaction ever executed by a German company outside the banking sector and the largest ABB transaction executed so far worldwide in 2020. In terms of issue volume, this is the largest equity issuance in Germany since 2018, and one of the largest free float increases ever achieved through an ABB transaction.

Latham & Watkins represented Siemens Healthineers with a capital markets team led by Frankfurt partner Oliver Seiler, with London partner Ryan Benedict, Frankfurt counsel Greg Walker and associates David Rath and Camilla Kehler-Weiß.